) revealed that it has acquired Pleasantville, Iowa-based
manufacturer of animal and food insecticides Chem-Tech Ltd. at an
undisclosed price (including contingent payment consideration).
NEOG has a long-term association with Chem-Tech as it has used
the latter's Prozap trademark for a number of years for some
Chem-Tech is operating for more than 35 years and is wholly owned
by Pat and Kelle Rolfes. Several of its insecticides are approved
for use in food establishments. One of its well known brands is
Prozap, which is extensively used by dairy and equine producers.
Its Turbocide products are also gaining popularity for the
fogging of food storage and warehouses.
Most of Chem-Tech's customers are also the customers of Neogen as
both of them have a long-term relationship. In the last 12
months, Chem-Tech's revenues amounted to more than $14 million.
In November last year, NEOG also acquired veterinary instrument
maker Prima Tech Incorporated. The Kenansville, N.C.-based Prima
Tech started its business in 1998 and has become a major supplier
of veterinary instruments in the U.S. and major portions of
Prima Tech's products are widely used by farmers, ranchers, and
veterinarians to inject animals, provide topical applications, as
well as for oral administration. They are also used in artificial
insemination in the swine industry. Its other products include
animal identification and handling equipment.
Neogen reported second quarter fiscal 2014 earnings per share of
17 cents, lagging the Zacks Consensus Estimate of 25 cents by 47%
as well as the year-ago earnings of 19 cents by 10.5%. Revenues
in the quarter grew 17.4% to $59.5 million, marginally surpassing
the Zacks Consensus Estimate of $59.0 million.
Currently, NEOG carries a Zacks Rank #5 (Strong Sell). Some
better-ranked stocks in the medical products industry include
Hill-Rom Holdings, Inc.
). All of them carry a Zacks Rank #2 (Buy).
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